18.0 Insurance of Works

18.1 Taking of Insurance

(a) The Co9ntractor shall in the joint names of the Government and the Contractor insure against loss and damage by fire, lightning, explosion, storm, tempest, flood, ground subsidence, bursting or overflowing of water tanks, appratus or pipes, arcraft and other aerial devices or articles driopped therefrom, riot and civil commotion, all work executed and all unfixed materials and goods, delivered to, placed onj or adjacent to the Works and intended therefore (but excluding temporary buildings, plant, tools and equipment owned or hired by the Contractor or any sub-contractor,m noiminated or otherwise) to the full value thereof (plus any amouint which may be specifically stated in Appendix or elsewhere in the Contract Documents) and shall keep such work, amterials and goods so insured until the completion of the whiole of the Works, notwithstanding any arrangement for Sectional Comletion or Partial. Occupation by the Government under this Contract. Such insurance policy or policies shall provide expressly for payment in the first place tot he Government of any insurance monies due under the policy or policies.


(b) The said insurance with or without an excess clauise as specified in Ap[emndix hereto shall be effected with an insurance company approved by the S.O. and it shall be the duty of the Contractor
to produce to theS.O. thje said poliocy or po9licies and the receipts in respect of the premium paid. Where an excess clause is specified in Appendix, the Contractor shall bear the amount of such excess.

18.2 Default in Insuring

If the Contractor fails to effect or renew such insurance as are necessary under this clause, the Government or the S.O. on its behalf may renew such insurnace and payu the premium in respec t thereof and deduct the amount so expeneded including On-Cost Charges (calculated by applying the Percentage of On-cost charges stated in Appendix to the premiums paid), from any money due or to the Contractor under this Contract, failing which such premium shall be recovered frrom the Performance Bond or as a debt due from the Contractor.

18.3 Payment of Insurance in the Event of any Loss/ Damage

Upon the occurrence of any loss or damage to the Works or unfixed materials or goods prior to the date the Works has been certified as practically completed by the S.O. in the Certificate of Practical Completion, the Contractor shall notwithstanding that settlement of any insurance claim has not been completed, with due filigence restore, replace or repair the same, remove and dispose of any debris and proceed witht he carrying out and compeltion fo the Works. All money if and when received from the insurance under this clause shall be paid in the first place to the Government and then (less any such amounts as are specificaly required in Appensix or elsewhere in the Contract Documents) be released to the Contractor by instalments on the certificate for payment issued by the S.O. , calculated as from the date of receipt of the money in proportion to the extent of the work of restoration, replacement or repair and the removal and disposal of debris previously carried out by the Contractor. The Contractor shall not be entitled to any payment in respect of the work of restoration, replacement or repair and the removal and disposal of debris other than the moneyh received under the said insurance

18.4  Cancellation of Insurance Policy

The Contractor shall ensure that any insurance policy effected hereto shall only be cancelled by the insurer after the expiry of thirty (3)) days from the date of receipt by the government of written notice from the insurer advising of such impending cancellation PROVIDED THAT the Contractor has been issued with the Certificate of Makiing Good Defects in accordance with clause 48.